Foreign investors cry foul over Indian tax surprise

Hong Kong: US and European investor groups have called for the Indian government to urgently clarify its tax regime for foreigners, following surprise attempts by tax inspectors to claw back money they say is owed on years of previously untaxed gains. International funds and banks could face a bill of as much as $8 billion, said tax experts, just as many foreign investors are poised to pour money into India following the election of Prime Minister Narendra Modi, who has pledged to create a more business-friendly environment.

"This development has caught everyone by surprise and is extremely worrying for foreign investors," said Patrick Pang, a managing director at the Asia Securities Industry & Financial Markets Association (ASIFMA) in Hong Kong. "It suggests that the Indian government can come out at any time and re-clarify what was believed to be an established tax policy on foreign investments."

In recent weeks, many foreign investors have duly received notices requesting their MAT calculations for financial year 2011-2012. The tax office has said it would also apply the tax to previous years.

Tax inspectors could go back seven years, according to Indian law, and could also charge interest and penalties.

Two individuals said some foreign investors had begun legal proceedings against the government. Investors say the change is at odds with Modi's desire to welcome investment, since it could hit private equity and venture capital transactions, not just portfolio investors.

seven wrote:did they not do their due diligence before investing in india? they had to know what GOI is like...why cry now

if they dont want to invest for watever reason, 100 others will...go India!

Kris wrote:

seven wrote:did they not do their due diligence before investing in india? they had to know what GOI is like...why cry now

if they dont want to invest for watever reason, 100 others will...go India!

>>Seven,

As article says, the nervousness is about "re-clarifying" of tax policy at any given time. This increases uncertainty. To begin with, India has not had a good reputation on this front. This just reinforces that. Unpredictability may be a good thing in romance, not so much in business .

seven wrote:did they not do their due diligence before investing in india? they had to know what GOI is like...why cry now

seven wrote:if they dont want to invest for watever reason, 100 others will...go India!

Marathadi-Saamiyaar wrote:

Kris wrote:

seven wrote:did they not do their due diligence before investing in india? they had to know what GOI is like...why cry now

if they dont want to invest for watever reason, 100 others will...go India!

>>Seven,

As article says, the nervousness is about "re-clarifying" of tax policy at any given time. This increases uncertainty. To begin with, India has not had a good reputation on this front. This just reinforces that. Unpredictability may be a good thing in romance, not so much in business .

Perhaps, the Revenue Dept was "auditing" the returns which the Phoreners are calling re-clarifying. May be the GoI is "re-clarifying" the returns filed by the phoreners.  Phoren coporations are well known to indulge in such cheating.

The IRS - Uncle Sam - audited my 2012 and asked me to pay some money with penalty and interest.  Should I also claim that the US is "re-clarifying" its tax regime towards foreigners like me?

garam_kuta wrote:

Marathadi-Saamiyaar wrote:

Kris wrote:

seven wrote:did they not do their due diligence before investing in india? they had to know what GOI is like...why cry now

if they dont want to invest for watever reason, 100 others will...go India!

>>Seven,

As article says, the nervousness is about "re-clarifying" of tax policy at any given time. This increases uncertainty. To begin with, India has not had a good reputation on this front. This just reinforces that. Unpredictability may be a good thing in romance, not so much in business .

Perhaps, the Revenue Dept was "auditing" the returns which the Phoreners are calling re-clarifying. May be the GoI is "re-clarifying" the returns filed by the phoreners.  Phoren coporations are well known to indulge in such cheating.

The IRS - Uncle Sam - audited my 2012 and asked me to pay some money with penalty and interest.  Should I also claim that the US is "re-clarifying" its tax regime towards foreigners like me?

aaahn! really! now, now...how did you manage get it back?

Marathadi-Saamiyaar wrote:

garam_kuta wrote:

Marathadi-Saamiyaar wrote:

Kris wrote:

seven wrote:did they not do their due diligence before investing in india? they had to know what GOI is like...why cry now

if they dont want to invest for watever reason, 100 others will...go India!

>>Seven,

As article says, the nervousness is about "re-clarifying" of tax policy at any given time. This increases uncertainty. To begin with, India has not had a good reputation on this front. This just reinforces that. Unpredictability may be a good thing in romance, not so much in business .

Perhaps, the Revenue Dept was "auditing" the returns which the Phoreners are calling re-clarifying. May be the GoI is "re-clarifying" the returns filed by the phoreners.  Phoren coporations are well known to indulge in such cheating.

The IRS - Uncle Sam - audited my 2012 and asked me to pay some money with penalty and interest.  Should I also claim that the US is "re-clarifying" its tax regime towards foreigners like me?

aaahn! really! now, now...how did you manage get it back?

Get it BACK ??? We are talking about I R S here. The key to deal with them - unless you are a rich entrepreneur with a battery of personal CPAs - simply pay up and close the file. Only time you seek clarification is if they had a very obvious mistake like a typo or overlooked some documentable number.

sorry for the confusion...It's to do with what I had 'bolded' - that you are a foreigner here in 2012?! got back your desiship again?

Marathadi-Saamiyaar wrote:

garam_kuta wrote:

Marathadi-Saamiyaar wrote:

Kris wrote:

seven wrote:did they not do their due diligence before investing in india? they had to know what GOI is like...why cry now

if they dont want to invest for watever reason, 100 others will...go India!

>>Seven,

As article says, the nervousness is about "re-clarifying" of tax policy at any given time. This increases uncertainty. To begin with, India has not had a good reputation on this front. This just reinforces that. Unpredictability may be a good thing in romance, not so much in business .

Perhaps, the Revenue Dept was "auditing" the returns which the Phoreners are calling re-clarifying. May be the GoI is "re-clarifying" the returns filed by the phoreners.  Phoren coporations are well known to indulge in such cheating.

The IRS - Uncle Sam - audited my 2012 and asked me to pay some money with penalty and interest.  Should I also claim that the US is "re-clarifying" its tax regime towards foreigners like me?

aaahn! really! now, now...how did you manage get it back?

Get it BACK ??? We are talking about I R S here. The key to deal with them - unless you are a rich entrepreneur with a battery of personal CPAs - simply pay up and close the file. Only time you seek clarification is if they had a very obvious mistake like a typo or overlooked some documentable number.

garam_kuta wrote:

Marathadi-Saamiyaar wrote:

garam_kuta wrote:

Marathadi-Saamiyaar wrote:

Kris wrote:
>>Seven,

As article says, the nervousness is about "re-clarifying" of tax policy at any given time. This increases uncertainty. To begin with, India has not had a good reputation on this front. This just reinforces that. Unpredictability may be a good thing in romance, not so much in business .

Perhaps, the Revenue Dept was "auditing" the returns which the Phoreners are calling re-clarifying. May be the GoI is "re-clarifying" the returns filed by the phoreners.  Phoren coporations are well known to indulge in such cheating.

The IRS - Uncle Sam - audited my 2012 and asked me to pay some money with penalty and interest.  Should I also claim that the US is "re-clarifying" its tax regime towards foreigners like me?

aaahn! really! now, now...how did you manage get it back?

Get it BACK ??? We are talking about I R S here. The key to deal with them - unless you are a rich entrepreneur with a battery of personal CPAs - simply pay up and close the file. Only time you seek clarification is if they had a very obvious mistake like a typo or overlooked some documentable number.

sorry for the confusion...It's to do with what I had 'bolded' - that you are a foreigner here in 2012?! got back your desiship again?

Marathadi-Saamiyaar wrote:

garam_kuta wrote:

Marathadi-Saamiyaar wrote:

garam_kuta wrote:

Marathadi-Saamiyaar wrote:

Perhaps, the Revenue Dept was "auditing" the returns which the Phoreners are calling re-clarifying. May be the GoI is "re-clarifying" the returns filed by the phoreners.  Phoren coporations are well known to indulge in such cheating.

The IRS - Uncle Sam - audited my 2012 and asked me to pay some money with penalty and interest.  Should I also claim that the US is "re-clarifying" its tax regime towards foreigners like me?

aaahn! really! now, now...how did you manage get it back?

Get it BACK ??? We are talking about I R S here. The key to deal with them - unless you are a rich entrepreneur with a battery of personal CPAs - simply pay up and close the file. Only time you seek clarification is if they had a very obvious mistake like a typo or overlooked some documentable number.

sorry for the confusion...It's to do with what I had 'bolded' - that you are a foreigner here in 2012?! got back your desiship again?

!040 does not ask anywhere if you are a citizen... Naturally, they sure as hell know from my name that I am a foreigner (they dont care if I am holding a European, Russian, Indian or US passport).